The Effect of Price, Brand Name, and Store Name on Buyer's Perceptions of Product Quality: An Integrated Review

Journal of Marketing Research (Impact Factor: 2.52). 08/1989; XXVI(August 1989):351-57. DOI: 10.2307/3172907

ABSTRACT The authors integrate previous research that has investigated experimentally the influence of price, brand name, and/or store name on buyers' evaluations of prod¬uct quality. The meta-analysis suggests that, for consumer products, the relation¬ships between price and perceived quality and between brand name and perceived quality are positive and statistically significant. However, the positive effect of store name on perceived quality is small and not statistically significant. Further, the type of experimental design and the strength of the price manipulation are shown to significantly influence the observed effect of price on perceived quality.

    • "For example, Procter & Gamble, the highest spending advertiser, who has over 40 well-established brands, continues introducing and promoting new brands (Johnson, 2012). Well-established brands activate consumers' prior knowledge of the brands, which guides processing of the information content (Kent and Allen, 1994) and evaluative judgements (Rao and Monroe, 1989), whereas new brands are less likely to activate schemata given that individuals have few established associations. Despite the significant role brands play in information processing and evaluation, academic consideration of brand effects on consumers' reactions to model stimuli is scarce. "
    European Journal of Marketing 01/2016; · 0.96 Impact Factor
  • Source
    • "Consumers often lack the time, motivation, or knowledge to judge a product's quality. In these instances, consumers rely on available cues (e.g., heuristics) such as the product's country of origin (Chao, 1998), brand name (Teas & Agarwal, 2000), and price (Rao & Monroe, 1989) to simplify their quality judgment task (Simonson et al., 1994). Consumers are able to distinguish between high-and low-diagnostic cues, and according to previous research, price is a more diagnostic cue than other extrinsic cues in determining product quality (Herr, Kardes, & Kim, 1991; Lichtenstein, Ridgway, & Netemeyer, 1993). "
    [Show abstract] [Hide abstract]
    ABSTRACT: This study delineates the conditions under which a late entrant is able to outperform a pioneer brand by examining the value relevance of alignable and non-alignable attributes. The first experiment shows that the late entrant can surpass the pioneer by adopting either a distinctive (new, non-alignable attribute) or enhancing (improved, alignable attribute) strategy depending on the value relevance of the new attributes. The second experiment provides evidence that pricing cues become instrumental when the value relevance of the late entrant with a distinctive strategy is low. In this context, the findings show that increasing the price of the product counter-intuitively enhances the preferences for the late entrant.
    Journal of Business Research 08/2015; · 1.48 Impact Factor
  • Source
    • "The brand name is an important feature of a product substantially shaping consumer's attitudes toward products (e.g., Rao and Monroe, 1989; Fombrun and Shanley, 1990; Keller, 1993; Erdem and Swait, 2004; Elliott and Yannopoulou, 2007; Reimann et al., 2012; Schmitt, 2012). Consumers' knowledge and affective attitudes to brands are determined by a wide range of psychological mechanisms (Keller, 2003), and empirically exploring these mechanisms to inform branding policies has been a lively researched topic in recent years (Keller, 2003; Keller and Lehmann, 2006). "
    [Show abstract] [Hide abstract]
    ABSTRACT: The present approach exploits the biomechanical connection between articulation and ingestion-related mouth movements to introduce a novel psychological principle of brand name design. We constructed brand names for diverse products with consonantal stricture spots either from the front to the rear of the mouth, thus inwards (e.g., BODIKA), or from the rear to the front, thus outwards (e.g., KODIBA). These muscle dynamics resemble the oral kinematics during either ingestion (inwards), which feels positive, or expectoration (outwards), which feels negative. In 7 experiments (total N = 1261), participants liked products with inward names more than products with outward names (Experiment 1), reported higher purchase intentions (Experiment 2), and higher willingness-to-pay (Experiments 3a-3c, 4, 5), with the price gain amounting to 4 % to 13 % of the average estimated product value. These effects occurred across English and German language, under silent reading, for both edible and non-edible products, and even in the presence of a much stronger price determinant, namely fair-trade production (Experiment 5).
    Frontiers in Psychology 05/2015; 6. DOI:10.3389/fpsyg.2015.00585 · 2.80 Impact Factor
Show more